Faster payout and the creation of a Single Customer View
What is meant by faster payout?
In July and November 2009, following a formal consultation process, the FSA published new regulatory rules requiring authorised deposit takers (banks, building societies and credit unions) to develop a ‘single customer view’ (SCV) showing each customer’s aggregate positive balances across all of their accounts at any given point in time. The requirements go beyond producing an SCV – the FSA also requires deposit takers to apply a specific set of ‘Faster Payout Rules’ to help ensure compensation can be paid within a target of seven days should they go into default. If a deposit taker fails, it will have 72 hours to provide the Financial Services Compensation Scheme with an SCV file with the Faster Payout Rules applied to the data set.
While a European Directive will require payment within 20 days, the UK authorities are targeting compensation payout within seven days of receiving a request from the FSCS.
The implementation deadline is 31st December 2010.
Why is this difficult?
The demands this places on the financial industry are significant – not only are there very real technology changes required, but the associated changes to processes and controls will affect many parts of an organisation. The short timeframe is also challenging.
One question currently being considered is whether this regulatory requirement can be used to drive strategic changes, delivering competitive advantage through better customer services, improved cost management and ultimately increased revenue?
What should Banks, Building Societies and Credit Unions be doing now? Download our A guide to faster payout for guidance.
How Deloitte can help
Deloitte have extensive experience in this area and can provide a range of services, including:
- Clarity on regulatory requirements
- Strategic implementation advice
- Programme planning/governance support
- Project assurance
- A faster payout inventory to size the problem
- Data cleansing, enrichment and matching services
- Control design
- SCV audit over ‘material’ changes
- Annual faster payout health checks
For more information, please contact us.